(MENAFN) Washington-based Expedia Inc has agreed to buy 61.6 percent stake in German hotels search engine trivago for about USD632 million in cash and common stock, Reuters reported.
The company, whose brands include Hotwire and Hotels.com, seeks to expand its reach in Europe.
The deal involves provisions for Expedia to acquire remaining trivago shares at fair market value shortly after the third and fifth-year anniversaries of the closing date, Expedia said.
The management team of trivago is expected to continue to running the business independently from Germany after the acquisition closes.
Expedia said trivago has doubled revenue each year since 2008 and expects about net revenue of about USD132 million this year.
trivago, which is visited by 20 million people monthly, was one of the fastest-growing channels from which Expedia is garnering an increasing amount of traffic, Expedia CEO Dara Khosrowshahi said.
The transaction, subject to approval from competition authorities, is expected to close in the by the summer of 2013.